Reference no: EM13914807

Your goal is to "buy" a car, and analyze the associated financing, as outlined below:

• Go to a car dealership and determine the make, model, year, and price (including tax and license fees) of the car you wish to purchase. Include a photograph of the car and the location of the dealership.

• Determine the amount of cash that you can/should pay as a down payment.

• What amount will you need to borrow? In other words, how much will you need to loan from the bank to purchase the car?

• Ask the car dealership, or go to a bank, and determine the interest rate they are willing to give you for your car loans and also the length of time they expect you to pay back the loan

• What will your monthly payment be?

• Use Microsoft Excel to construct an amortization table for your car loan, with the column headingsand details set up like we went over in lab on Tuesday, October 6. You have to construct this table with your group, without outside assistance. A table provided by your lender is not sufficient and will not count.

• Determine the total interest paid over the course of the loan.

• Determine the total principal paid over the course of the loan.

• Determine how long it would take to pay off your loan if you paid $75 more each month and also if you paid $100 more each month.

• Discuss the advantages and disadvantages of paying off a loan with higher payments than required.

INFORMATION ON THE NEXT PAGE

Information:

My income: 2,600 per month (31,200 a year)
2015 Chevrolet Silverado 1500 4WD LS REG
Price: 32,000
Down Payment: 10,000
$32,000 - $10,000 down payment
Auto loan amount: $22,000
Auto loan term in years: 5.000 or in months 60
Interest per year: % 7.000
Auto loan start date: 27 Oct 2015
Monthly payments: $435.63

Attachment:- Amort Table.rar